The Roxboro Group PLC Preliminary Results 2003 15th March 2004 preliminary results 2003 the roxboro group plc 2003 - the opening challenge y Economic climate continued to be difficult in key markets y Telecoms market remained soft y Process segment remained flat y Oil and Gas segment was mixed y Aerospace was beginning to improve y Very few bright spots y Market capitalisation £82million preliminary results 2003 the roxboro group plc 2003 - our response y Disposal of aerospace sensors business for £55.7million y Returned £42.6million to shareholders y Relocated Dialight production from USA to Mexico y Drove hard on RoBuST programmes y Kept costs tight y Redirected selling effort y Maintained R&D spend preliminary results 2003 the roxboro group plc the result y Sale proceeds 61% of market cap. at the time of the deal y Generated shareholder value y Created more focus in Group y Reduced operating and central costs y Positioned Group for new growth preliminary results 2003 Financial Review 2003 preliminary results 2003 the roxboro group plc group profit and loss account 2003 £m y Turnover 136.8 Continuing Operations Discontinued operations 2002 156.0 122.2 14.6 124.6 31.4 8.2 8.6 5.4 2.8 5.2 3.4 y Interest (0.3) (0.9) y Profit before goodwill & exceptionals – Goodwill – Profit on disposal of Weston y Profit before tax 7.9 (1.2) 15.6 22.3 7.7 (1.1) 6.6 y Operating Profit Continuing operations Discontinued operations preliminary results 2003 the roxboro group plc group profit and loss account-continued £m 2003 y Profit before taxation Tax Dividends y Retained Profit 2002 22.3 6.6 (2.6) (2.5) 19.7 4.1 (3.0) (5.7) 16.7 (1.6) y Operating Margin* 6.0% 5.5% y Trading Margin ** 5.8% 4.9% * before profit on disposal, goodwill, amortisation and interest ** before profit on disposal, goodwill amortisation and after interest preliminary results 2003 the roxboro group plc continuing operations first and second half comparison £m First Half Second Half % Movement Sales Profit Sales Profit Sales Profit Dialight 27.6 0.3 30.3 0.7 10% 133% Solartron 31.1 2.8 33.2 3.8 7% 36% 58.7 3.1 63.5 4.5 8% 45% Central Interest (1.1) (1.1) - 2.0 3.4 70% (0.3) - 1.7 3.4 100% preliminary results 2003 the roxboro group plc profit on disposal of Weston £m Initial Sales Proceeds Cash adjustment net of assumed tax Expenses 55.0 0.7 55.7 (2.4) 53.3 Less cost of investment – net assets (16.0) – goodwill previously written off (21.7) (37.7) Profit on disposal 15.6 Tax due on disposal (0.2) Exit P/E (2002 actuals) Exit EBITDA (2002 actuals) 25x 11x preliminary results 2003 the roxboro group plc dividends and earnings per share 2003 y Dividends per share 2002 10.0p 10.0p 45.4p 12.6p 7.2p 9.1p 6.5x 1.4x 0.7x 0.7x y Continuing Operations 0.8x - y Cash Cover - continuing operations 1.6x - y EPS Basic Adjusted y Dividend Cover Basic Adjusted for profit on disposal preliminary results 2003 the roxboro group plc movement in net debt £m Free Cash Flow y y y y y y Disposals Issue of ordinary shares Redemption of B shares Share issue expenses Dividends Acquisitions 2003 2002 6.8 8.0 52.7 0.1 (40.1)(0.5)(4.9)(5.7) (4.8) Net Cash Inflow/(Outflow) 14.1 (2.5) y Opening Net Debt (11.7)(8.6) y Translation (0.4)(0.6) Closing Net Cash/(Debt) 2.0 (11.7) preliminary results 2003 Operational Review 2003 preliminary results 2003 Operational Review SOLARTRON preliminary results 2003 the roxboro group plc Solartron business by market sector 19% 14% 12% Level & Flow Measurement in Process Sector 55% Flow Metering in Oil and Gas Gauging Products in Metrology Sector Laboratory Instruments for Materials Analysis preliminary results 2003 the roxboro group plc Solartron overview y Good tight performance in slack markets y Margins in double digits y Strong H2 performance up 36% up on H1 y RoBuST initiatives making a difference y Good growth in Service Business y Brighter environment towards year end preliminary results 2003 the roxboro group plc Solartron highlights y Dualstream II granted international recognition y Sakhalin contract expanded and on schedule y Won first Dualstream II contract in China y Completed North Sea contract for Shell y Acquired novel radar technology y Ultrasonic product family launched y Markets looking better than for past three years preliminary results 2003 the roxboro group plc Solartron -key drivers in 2004 y Overall expected market recovery y New product introductions y Geographic expansion y Dualstream II Wet Gas Growth y Far East appetite for laboratory instruments y Increasing glass gauging preliminary results 2003 Operational Review DIALIGHT preliminary results 2003 the roxboro group plc Dialight - 2003 key points y Significant operational issues related to supply chain transfer to Mexico y Gross Margin Increase 17% in $ and 2.3% in COS y Inventory reduced 8% y Sales up 7% despite fall in Traffic pricing y Material and direct labour savings yet to be fully realised preliminary results 2003 the roxboro group plc Dialight -Optoelectronics y Distributor POS up strongly from Q4/02 y Expanded distribution channels - Future Electronics and Regional Industrial y Continued strong position in Distribution and with proprietary products y Fourth quarter - strongest bookings for 12 quarters y Continuing price pressures at CEMs y LED costs continue to reduce y Electronics market growth expected to continue y Expansion into new markets - Gaming, Industrial, and other non-telecom preliminary results 2003 the roxboro group plc DIalight - Signals - traffic y y y y y y y y y US Traffic sales up 7% in units but slightly down in turnover Major cost reductions implemented giving improved margins Strong dealer network protecting small/medium business Major contracts bid selectively- wins at NC, CT, KY, Detroit, Edmonton, Calgary “IntelliLED™”, Expanded View and “Incandescent” Arrow introduced European Signals sales show double digit growth New supply agreements signed with Peek and Siemens Some price pressure coming to Europe New low cost Traffic Signal to be introduced in March at Intertraffic Show preliminary results 2003 the roxboro group plc Dialight - Signals y Expect good growth y Continued cost reductions y FAA Obstruction Contract to ship in 2004 y Balance of NYCT Rail contract to ship with follow on expected y New products differentiation continues preliminary results 2003 the roxboro group plc Dialight - Lighting y Luxeon Design Centre established y Partnering with Lumileds and Future y 2003 was a year of prospecting y Strategy is similar to Opto - selling to OEMs y Trial OEM Customers in Lifts / Street Sign / Marine / Vending / Theatre / Swimming y Secured substantial OEM Pool Light order y Good revenues expected in 2004 preliminary results 2003 the roxboro group plc Dialight - Prospects y Continued electronics market recovery expected y Dialight leveraged to recovery y Further Signals cost reductions yet to show y Shipment of new technology products to begin in 2004 y Improving Mexican improvements y Anticipate a much improved overall performance preliminary results 2003 the roxboro group plc Summary y Conditions more favourable than past 3 years y Relocation project completed y New product introductions y Exciting prospects in Lighting y Looking for better progress in 2004 y Group mission remains generation of shareholder value preliminary results 2003 The Roxboro Group PLC Preliminary Results 2003 15th March 2004 preliminary results 2003